Philips 2004 Annual Report Download - page 132

The changes in the allowance for doubtful accounts are as follows:
2002 2003 2004
Balance as of January 1 281 225 184
Additions charged to income 72 58 52
Deductions from allowance * (89) (27) (4)
Other movements ** (39) (72) (16)
Balance as of December 31 225 184 216
*Write-offs for which an allowance was previously provided
** Including the effect of translation differences and consolidation changes
O
10 Inventories
Inventories are summarized as follows:
2003 2004
Raw materials and supplies 962 1,078
Work in process 582 576
Finished goods 1,762 1,700
Advance payments on work in process (102) (124)
Total 3,204 3,230
The amounts recorded above are net of reserves for obsolescence. The changes in the reserves
for obsolescence of inventories are as follows:
2002 2003 2004
Balance as of January 1 909 701 612
Additions charged to income 229 303 256
Deductions from reserve (363) (309) (255)
Other movements * (74) (83) (35)
Balance as of December 31 701 612 578
*Including the effect of translation differences and consolidation changes
O
11 Other current assets
Other current assets primarily consist of a current deferred tax asset of EUR 334 million (2003:
EUR 357 million), derivative instruments – assets of EUR 523 million (2003: EUR 411 million)
and prepaid expenses.
The Company has no trading securities.
131Philips Annual Report 2004